Paramount launches cash-only bid to seize Warner Bros. Discovery from Netflix

Paramount Global has launched a bold, all-cash bid to acquire Warner Bros. Discovery for 108.4 billion USD, aiming to take the company in a hostile move. The strategy places Paramount directly against Netflix, which has already agreed to purchase WBD for around 83 billion USD. A dedicated site outlining the case for the bid has been published to persuade shareholders.

Paramount's cash offer and scope

The proposal is a full cash purchase worth 108.4 billion dollars, with Paramount seeking control of Warner Bros. Discovery in its entirety, including CNN and the Discovery networks. The company also unveiled a separate website to present its case to investors.

Why Paramount says this path is safer

Paramount argues that a cash-only deal offers speed and certainty, reducing regulatory delays. Netflix's plan involves a mix of stock and cash, potentially prolonging reviews and adding complexity for regulators and shareholders alike.

Board responses and counterarguments

Warner Bros. Discovery has previously rejected Paramount's approach on three occasions. In response, Paramount's team sent a letter accusing the process of lacking transparency and suggesting the bidding process was effectively tailored for a single bidder, limiting fair competition.

Industry impact and what happens next

If the deal goes through, it would become the largest Hollywood acquisition in history, reshaping access to major franchises such as Harry Potter, Mad Max, The Matrix, The Lord of the Rings, and a broad slate of films and series. Warner Bros. Discovery says it will study the proposal but has not changed its current recommendation. The path ahead will involve multiple regulatory checks and potential legal challenges as negotiations unfold.

Paramount's chair, David Ellison, has argued that the Warner board may have underestimated the value and urged shareholders to consider what best serves their interests. He declined to comment on whether the family would finance the bid with additional asset sales.

Earlier, Warner Bros. Discovery rejected Paramount's overtures on three occasions. Paramount's lawyers criticized the process for a perceived lack of transparency and claimed the bidding process favored a single bidder, denying other suitors a fair shot.

Expert commentary

Expert comment: Analysts say a pure cash bid could accelerate closing and reduce regulatory risk, but antitrust scrutiny remains a major hurdle for a combined media giant.

Short summary

The clash between Paramount and Netflix over Warner Bros. Discovery escalates as Paramount offers a cash-only bid to win control. Netflix's plan involves stock and cash, with a longer regulatory timeline and higher uncertainty. Regulators will play a crucial role as both sides push for a timely conclusion while safeguarding competition.

The key takeaway is that a cash-first strategy aims to maximize upfront value for shareholders, but the deal hinges on navigating antitrust review and the financing package.